Cementos Pacasmayo S.A.A. American Depositary Shares (Each representing five Common Shares) (CPAC) Company Bio
Cementos Pacasmayo S.A.A. produces, distributes, and sells cement and cement-related materials in the northern region of Peru. It operates in three segments: Cement, Concrete and Blocks; Quicklime; and Construction Supplies. The company was founded in 1949 and is based in Lima, Peru.
CPAC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CPAC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Cementos Pacasmayo Saa ranked in the 28th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 51.5%. The most interesting components of our discounted cash flow analysis for Cementos Pacasmayo Saa ended up being:
91% of the company's capital comes from equity, which is greater than 78.82% of stocks in our cash flow based forecasting set.
The business' balance sheet reveals debt to be 9% of the company's capital (with equity being the remaining amount). Approximately just 21.14% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
As a business, Cementos Pacasmayo Saa experienced a tax rate of about 19% over the past twelve months; relative to its sector (Basic Materials), this tax rate is higher than 66.73% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BCPC, TSE, IFF, SCHN, and GRA can be thought of as valuation peers to CPAC, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
Joining me on the call today is Mr. Humberto Nadal, our Chief Executive Officer; and Mr. Manuel Ferreyros, our Chief Financial Officer. Mr. Nadal will begin our call with an overview of the quarter, especially our response to COVID-19, and our strategic outlook for the short and medium-term.
Cementos Pacasmayo S.A.A. and subsidiaries (NYSE: CPAC; BVL: CPACASC1) ("the Company" or "Pacasmayo") a leading cement company serving the Peruvian construction industry, announced today its consolidated results for the second quarter ("2Q20") ended June 30, 2020. These results have been prepared in accordance with International Financial Reporting Standards ("IFRS") and are stated in nominal Peruvian Soles (S/).